Overview

The Malaysian economic outlook for the third quarter is expected to moderate,
with the Leading Index recording 0.5 per cent in March 2026

The performance of the Leading Index (LI) increased by 0.5 per cent year-on-year in March 2026, recording 113.3 points as compared to 112.7 points in the same month of the previous year. This increase was driven by the expansion of three out of seven components, with the Number of Housing Units Approved recording the highest growth at 32.3 per cent. On the other hand, Real Import of Semi Conductors recorded a decline of 22.6 per cent, in line with more moderate external demand, thereby limiting the overall growth of the index. Meanwhile, the monthly momentum of the LI recorded a marginal decline of 0.1 per cent, mainly influenced by a moderation in the Real Imports of Other Basic Precious and Other Non-ferrous Metals (-0.9%).

The long-term smoothed trend of the LI in March 2026 remained below 100.0 points, reflecting a moderate growth momentum despite global uncertainty risks, including persistent inflationary pressures. Nevertheless, strong domestic economic activity and sustained investment continued to support the national economy in facing external shocks.

Meanwhile, the Coincident Index (CI) which reflects current economic performance increased by 2.0 per cent year-on-year to 130.4 points in March 2026 as compared to 127.9 points in March 2025, supported by Real Contributions to the Employees Provident Fund (EPF) (16.4%) and followed by the Volume Index of Retail Trade (5.0%). In line with this, the monthly performance also increased by 0.8 per cent, contributed by Real Contributions to the EPF (0.9%).

The Diffusion Index for LI remained 42.9 per cent in the reference month. Meanwhile the Diffusion Index for CI decreased to 33.3 per cent as compared to 50.0 per cent in the previous month.

For interviews, press statement and clarification to the media, contact:
Baharudin Mohamad
Public Relation Officer
Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

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